🕐19.11.09 - 10:30 Uhr
Xtierra Inc. (TSXV:XAG) options Laguna Pedernalilo Project
Xtierra Inc_Text.jpg
Press Release
XTIERRA OPTIONS LAGUNA PEDERNALILO PROJECT
Toronto, November 18, 2009, Xtierra Inc.
(TSXV - XAG) (“Xtierra” or the
“Company”), announces that it has entered into an Option and Sale
Agreement (the “Agreement”) with Indo Gold Limited (“IGL”), of
Queensland, Australia for the option and sale of the silver-rich Laguna
Pedernalillo (“Laguna”) transported tailings deposit located near the town
of Guadalupe in the State of Zacatecas, Central Mexico.
Commenting on the Agreement, Terence McKillen, Xtierra’s President and CEO,
said, “We are very pleased with the outcome of negotiations with Indo Gold
for the option and sale of the Laguna project.
Since the acquisition and
discovery of the silver-zinc-lead-copper Bilbao project, Xtierra has shifted
focus from development of Laguna to advancement of the Bilbao project
through feasibility.
Successful implementation of the Agreement with IGL
will provide Xtierra with initial cash and a steady stream of revenue over
the life of operations at Laguna.
We believe that Indo Gold has the
requisite industry experience and expertise to successfully develop the
Laguna project.”
Under the terms of the Agreement, IGL will, on signing, pay Xtierra
US$150,000 and will have an option for a three month period to conduct
initial due diligence.
In the event IGL elects to proceed to an extended due
diligence period of a further six months’ duration, IGL will pay to Xtierra
a further US$350,000 and shall expend a minimum of US$300,000 during the
option periods in trial mining, processing and associated activities
required for further definition of the project and to confirm feasibility.
IGL may at any time during the due diligence periods and within one month
after the expiry of the second due diligence period, exercise an option to
purchase the Laguna project.
The consideration for the purchase will be a
net smelter royalty of three percent (3%) for the life of the operation and
a cash consideration of US$1,250,000 to be effected in two payments, one of
US$500,000 upon making the election to purchase and the second of US$750,000
to be paid at the earlier of base commercial production level being achieved
or 18 months after the first payment is made.
The agreement provides for
advanced royalty payments of US$200,000 per annum should the base commercial
production level not be achieved within twelve (12) months of receipt of the
second cash purchase payment.
The transaction will be effected through the
sale and transfer of all of the issued and outstanding shares of Minera
Orca, S.A.
de C.V.
(“Minera Orca”), an indirect wholly-owned Mexican
subsidiary of Xtierra.
Should IGL complete the two due diligence payments and make the full
expenditure contemplated therein but not exercise the option to purchase, it
shall be entitled to a five percent (5%) net profit interest in the Laguna
project.
Minera Orca holds an extraction licence granted by Conagua, the Mexican
authority responsible for water resources, for the silver-rich tailings
deposit located at Laguna.
In January 2006, Micon International completed a
Bankable Feasibility Study on the project and in February 2008, prepared a
revised reserve estimate for Xtierra of 6,799,000 tonnes, containing an
average of 57.92 g/t silver, 0.31 g/t gold and 328.92 g/t mercury.
The
Laguna deposit comprises tailings solids derived from historic mine
processing wastes and tailings located some distance upstream from a dam
constructed in 1836 to retain water for agricultural use.
Qualified Person
Information of a scientific or technical nature contained in this release
has been prepared by or under the supervision of Gerald Gauthier, P.Eng.,
the Chief Operating Officer of the Corporation and a Qualified Person within
the meaning of National Instrument 43-101 of the Canadian Securities
Administrators.
About Xtierra Inc.
Xtierra Inc.
is a Toronto based exploration and development company listed
on the TSX Venture Exchange.
Xtierra’s shares trade under the symbol
“XAG”.
Xtierra has 49,862,003 shares issued and outstanding.
Xtierra has
commenced a first phase feasibility study on its 100% owned Bilbao silver‐
zinc‐copper project in Zacatecas, Mexico.
Xtierra’s objective is to become
a mid‐tier producer of silver and base metals through the development of
its Bilbao and Laguna projects, both located in the Central Mexican Silver
Belt in the State of Zacatecas, as well as through exploration and M & A
opportunities.
This news release may include certain "forward-looking statements".
All
statements other than statements of historical fact, included in this
release, including, without limitation, statements regarding potential
mineralization, resources and reserves, exploration results, and future
plans and objectives of Xtierra, are forward-looking statements that involve
various risks and uncertainties.
There can be no assurance that such
statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements.
Important
factors that could cause actual results to differ materially from Xtierra’s
expectations are exploration risks detailed herein and from time to time in
the filings made by Xtierra with securities regulators.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or the accuracy of this release.
For further information visit www.xtierra.ca or
contact:
Terence N.
McKillen, President & Chief Executive
+1 (416) 362-8243
Tim Gallagher, Director
+1 (416) 925-0090
Alejandro Alaniz, Director Finance & Administration (Mexico) + 52
(492) 925-0804
Brett Whitelaw
+1 (778) 836-5891
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